Both a solar purchase and a solar lease will cost you nothing out of pocket.
You are currently paying PSEG between 19 and 20 cents a kilowatt hour. Our solar customers will pay an average of 8 to 9 cents effective cost per kilowatt hour. That’s a 58% savings.
There are four main ways to acquire solar today: a power purchase agreement (PPA), leasing, purchasing with financing, and a straight purchase. In almost every case, your solar payments will be less than your existing utility costs, effectively saving you money every month.
A PPA agreement starts with a lower per kilowatt price but has escalators built in, generally at 2.9% rate increase per year for 20 years. Your payments are guaranteed to go up with a PPA. Solar loan and lease payments are fixed; your payments will not fluctuate during the term of your loan or lease.
And if history teaches us anything, it is expected that your PSEG bill will fluctuate, most likely in the upward direction.
Both the short term and long term savings numbers for solar energy are compelling. Typical costs associated with each form of solar electric are:
Simply stated as an example, an average home making 12,000 kilowatt hours of solar energy can save about $1,200.00 in the first year alone. And the beautiful thing about solar energy is that you are using funds you are already spending: you’re just re-directing part of your current utility payment to pay for your solar, and pocketing the difference. And if you purchase a solar energy system that is producing as much electricity as you are using, your PSEG bill will drop to about $11.50 a month, once the system is paid for.
And your savings will continue to grow over the 25+ -year life of the system as utility rates continue to climb.